06.12.2012 Views

2010 Sustainable Development Report EXECUTIVE ... - Cemex

2010 Sustainable Development Report EXECUTIVE ... - Cemex

2010 Sustainable Development Report EXECUTIVE ... - Cemex

SHOW MORE
SHOW LESS

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

uilding a<br />

better future<br />

<strong>2010</strong> sustainable development report<br />

<strong>EXECUTIVE</strong> sUmmary


tAblE Of COntEntS<br />

1 About CeMeX<br />

2 MessAge froM our ChAirMAn And Ceo<br />

4 PerforMAnCe suMMAry<br />

6 sustAinAbility Vision And Model<br />

8 sustAinAbility Priorities And Progress<br />

8 leAd in sustAinAble ConstruCtion<br />

9 low-inCoMe housing And infrAstruCture<br />

10 enhAnCe our CArbon strAtegy<br />

11 eXCellenCe in enVironMentAl And<br />

biodiVersity MAnAgeMent<br />

12 high Priority to heAlth And sAfety<br />

14 strengthen loCAl CoMMunities<br />

16 PArtnershiP with Key stAKeholders<br />

18 resPonsibility for sustAinAbility At CeMeX<br />

19 AwArds And reCognitions<br />

COnnECt:<br />

www.facebook.com/cemex<br />

www.twitter.com/cemex<br />

www.flickr.com/cemex<br />

www.youtube.com/cemex<br />

www.cemex.com/sustainability<br />

sd@cemex.com<br />

OUR COVER<br />

Our cover shows the project “El Acantilado – Hábitat<br />

Ecológico”, a CEMEX Building Awards sustainable<br />

construction project. Photo: Pedro Truyol<br />

GRI A+ SCORE<br />

We applied the Global <strong>Report</strong>ing Initiative (GRI) G3<br />

Sustainability <strong>Report</strong>ing Guidelines to produce our full<br />

report, which meets an application level of A+ for the third<br />

consecutive year. We provide a GRI index and an index of<br />

United Nations Global Compact disclosures on our website<br />

at www.cemex.com/sustainability<br />

about<br />

CEMEX<br />

We help our customers solve their building<br />

challenges<br />

CEMEX is a global building materials company that provides products<br />

of consistently high quality and reliable service to customers<br />

and communities across the world.<br />

We advance the well-being of those we serve through our relentless<br />

focus on continuous improvement and our efforts to promote a<br />

sustainable future.<br />

Our company was founded in Mexico in 1906, and we have grown<br />

from a local player to one of the top global companies in our industry,<br />

with close to 46,500 employees worldwide. Today we are strategically<br />

positioned in the Americas, Europe, Africa, the Middle East, and<br />

Asia. Our operations network produces, distributes, and markets cement,<br />

ready-mix concrete, aggregates, and related building materials<br />

to customers in over 50 countries, and we maintain trade relationships<br />

in approximately 100 nations.


Quick Facts (as of December 31, <strong>2010</strong>)<br />

n CEMEX, S.A.B. de C.V., (NysE: CX / BmV: CEmEX), a holding company, is a public stock corporation with variable capital (S.A.B. de C.V.)<br />

organized under the laws of the United Mexican States (Mexico)<br />

n Founded in mexico in 1906<br />

n World’s leading supplier of ready-mix concrete, a leading cement and aggregates producer, one of the world’s largest producers<br />

of White Portland Cement, and one of the top cement and clinker traders in the world.<br />

n Presence in more than 50 countries and trade relationships in approximately 100 nations<br />

n Close to 46,500 employees worldwide<br />

n Annual production capacity of 96 million metric tons of cement<br />

n Annual production levels of approximately 51 million cubic meters of ready-mix concrete and more than<br />

158 million metric tons of aggregates<br />

n 62 cement plants, close to 2,000 ready-mix concrete facilities, and a minority participation in 12 cement plants<br />

n 376 aggregate quarries, 223 land-distribution centers, and 71 marine terminals<br />

n Our customers range from global construction firms to individuals building their homes<br />

SaleS dIStRIbutIOn by PROduCt<br />

percentage<br />

34<br />

14<br />

3<br />

Mexico: 29.3<br />

48<br />

l CEMENT<br />

l READY-MIX<br />

CONCRETE<br />

l AGGREGATES<br />

l OTHERS<br />

<strong>2010</strong> Global Operations<br />

Cement Production Capacity (million metric tons/year)<br />

South / Central<br />

America and<br />

Caribbean: 12.8<br />

11<br />

USA: 17.2<br />

SaleS GeOGRaPHIC dIStRIbutIOn<br />

percentage<br />

35<br />

8<br />

4<br />

Europe: 25.7<br />

25<br />

18<br />

TOTAL: 96.1<br />

l MEXICO<br />

l UNITED STATES<br />

l EUROPE<br />

l SOUTH/ CENTRAL<br />

AMERICA AND<br />

CARIBBEAN<br />

l AFRICA AND<br />

MIDDLE EAST<br />

l ASIA<br />

9<br />

Africa and<br />

Middle East: 5.4<br />

WORKFORCe GeOGRaPHIC dIStRIbutIOn<br />

percentage<br />

8<br />

32<br />

7<br />

25<br />

19<br />

Asia: 5.7<br />

l MEXICO<br />

l UNITED STATES<br />

l EUROPE<br />

l SOUTH/ CENTRAL<br />

AMERICA AND<br />

CARIBBEAN<br />

l AFRICA, MIDDLE<br />

EAST AND ASIA<br />

l CENTRAL<br />

1<br />


2<br />

—<br />

MESSAGE from<br />

our chairman<br />

and CEO<br />

“Sustainability is central to<br />

our business strategy and<br />

key to our future growth.”<br />

tO OuR StaKeHOldeRS:<br />

For CEMEX, <strong>2010</strong> was a transitional year, as the global building materials<br />

sector continued an uneven recovery from the great recession. We<br />

strengthened both our business model and our balance sheet, positioning<br />

our company for long-term profitable growth. At the same<br />

time, we intensified our commitment to integrating sustainability into<br />

all aspects of our world-wide business.<br />

Sustainability is central to our business strategy and one of the keys<br />

to our future growth. As the largest concrete producer in the world,<br />

we have both a responsibility and a great opportunity to help lead<br />

the transition to a truly sustainable construction industry. That, in<br />

turn, would be a critical element of a low carbon economy.<br />

The challenges of building the sustainable housing and infrastructure<br />

required by a growing global population are immense. Society needs<br />

innovations not only in design, materials, and construction processes,<br />

but also in creating access to green housing and infrastructure, especially<br />

for those who are in most need. CEMEX is committed to helping<br />

stimulate those innovations, while improving the sustainability of our<br />

own operations and increasing our social investment.<br />

I am pleased to report that we made progress on all those fronts<br />

last year.<br />

For example, although concrete is the most inherently sustainable<br />

building material, we intensified our work to improve its characteristics.<br />

This included developing concretes that improve structural<br />

strength, provide extra insulation or allow water to filter through.<br />

We also introduced a carbon footprint tool- the first of its kind in the<br />

building materials industry- that allows us to measure the greenhouse<br />

gas emissions of our cement, ready-mix, and aggregates products. The<br />

tool has already been implemented in all of CEMEX’s operating cement<br />

plants, and is now being extended across our ready-mix and aggregates<br />

operations worldwide. As a result, we will begin to roll out carbon<br />

content information for our products during 2011.<br />

We significantly increased the use of lower-carbon alternative fuels<br />

in our kilns. In <strong>2010</strong> our alternative-fuel use rose to 20.3 percent of<br />

our total fuel mix, almost doubling from the 10.3 percent recorded<br />

in 2008. Partly as a result, we are on course to avoid 25 percent of<br />

specific net CO2 emissions related to manufacture of cementitious<br />

products by 2015 compared to our 1990 baseline.<br />

CEMEX has a longstanding and well-documented commitment<br />

to biodiversity and wilderness preservation. In concert with this<br />

tradition, last year we and our partners at BirdLife International<br />

completed a multi-year scoping study on the biodiversity status<br />

of our worldwide cement and aggregates operations. We assessed<br />

543 sites and identified 131 sites that overlap with areas of high<br />

biodiversity value. We are using this study to develop biodiversity<br />

action plans.


During <strong>2010</strong>, we continued our initiatives to build affordable housing<br />

and infrastructure in developing markets. Last year alone, more than<br />

45,000 families were able to improve their homes through our Patrimonio<br />

Hoy program, bringing the total to more than 300,000 since we<br />

started the program in 1998. The World Business and <strong>Development</strong><br />

Awards organized by the United Nations <strong>Development</strong> Program, the<br />

International Chamber of Commerce, and the International Business<br />

Leader Fund, recognized our contributions towards achieving the Millennium<br />

<strong>Development</strong> Goals through programs such as Centros Productivos<br />

de Autoempleo, which we expanded to Colombia in <strong>2010</strong>.<br />

Last year witnessed a number of extreme weather events and natural<br />

disasters that severely affected countries and communities where<br />

CEMEX operates. In response, we intensified our disaster relief efforts,<br />

providing emergency humanitarian aid and supporting long-term<br />

reconstruction efforts.<br />

After the <strong>2010</strong> Haiti earthquake, CEMEX raised US$750,000 in company<br />

and employee contributions, with donations from more than<br />

2,500 employees in 29 countries, to help support both emergency<br />

relief and reconstruction efforts. Additionally, we provided direct<br />

assistance in Haiti itself. After June’s catastrophic flooding in Central<br />

Europe, CEMEX focused on Poland and northeastern Hungary, where<br />

the damage was greatest. We provided machinery to help drain<br />

the water and clear roads, and donated construction materials to<br />

reinforce flood banks. In Northern Mexico, Hurricane Alex produced<br />

record-breaking rainfall during early July, creating widespread flooding<br />

and leaving thousands homeless or without access to water or<br />

electricity. CEMEX and our employees responded with significant<br />

donations of time, money and equipment as part of the cleanup,<br />

relief and reconstruction efforts.<br />

An integral part of our sustainability commitment is our continuing,<br />

company-wide effort to improve workplace and community safety.<br />

The safety and well-being of our employees, contractors, and other<br />

third parties involved in our operations is paramount. While we<br />

made significant progress in many health and safety-related areas<br />

last year, we are profoundly sorry to report that in <strong>2010</strong> there were<br />

46 employee, contractor and third-party fatalities related to our<br />

operations. This is unacceptable to us: we refuse to accept even one<br />

such tragedy as inevitable.<br />

Zero tolerance for accidents requires constant innovation. In this spirit,<br />

we have continued to roll out the LEGACY training program globally.<br />

In 2011 we will launch new health and safety policies, implement our<br />

new Health and Safety Management System, and require greater accountability<br />

for safety performance from all our managers.<br />

At CEMEX, we know that sustainability is a fundamental—and<br />

urgent—requirement of planetary survival, and we are deeply<br />

committed to pursuing an aggressive sustainability agenda in our<br />

industry, in our communities and in the countries where we operate.<br />

Lorenzo H. Zambrano<br />

Chairman of the Board and Chief Executive Officer<br />

We have continued to work with a broad range of stakeholders—<br />

including customers, suppliers, employees, shareholders, neighboring<br />

communities, NGOs, universities and governments—to develop<br />

and promote best practices, innovative research and positive policy<br />

solutions.<br />

For example, at the <strong>2010</strong> World Economic Forum in Latin America, we<br />

proposed a new model for urban development and urged new alliances<br />

among key stakeholders to finance housing projects. And, at the<br />

end of the year, CEMEX was an official sponsor of the COP 16 meeting<br />

in Cancun, Mexico, contributing to the global climate change debate<br />

with initiatives that highlighted how existing building and energy<br />

technologies can help the transition to a low carbon world.<br />

Every CEMEX employee recognizes that sustainability requires constant<br />

effort, innovation and commitment both as individuals and as<br />

a company. We are grateful for the input of the <strong>Sustainable</strong> <strong>Development</strong><br />

<strong>Report</strong>ing Advisory Panel in our ongoing effort to report<br />

more transparently on our challenges as well as our successes. Their<br />

guidance is invaluable to this process. At the same time, we invite<br />

feedback from all of our stakeholders and look forward to continually<br />

improving our performance in the coming years.<br />

Sincerely,<br />

Lorenzo H. Zambrano<br />

Chairman of the Board and Chief Executive Officer<br />

3<br />


4<br />

—<br />

PERFORMANCE<br />

summary<br />

The following tables provide an overview of our performance indicators and progress toward our companywide sustainability targets. We are<br />

committed to improving our performance in all areas and will continue to disclose our achievements and challenges. Unless otherwise specified,<br />

the information provided is for the company as a whole. The full list of indicators, broken down by business segments where available, can<br />

be found in the Performance in Detail section of the full version of our <strong>2010</strong> <strong>Sustainable</strong> <strong>Development</strong> <strong>Report</strong> available for download in our<br />

corporate website.<br />

This year we have added indicators corresponding to our objective to Enhance our Value creation, specifically in our priority to Lead in <strong>Sustainable</strong><br />

Construction and focusing on our new CO2 Footprint tool.<br />

The indicators marked with were subject to an external limited assurance process by PwC. The assurance statement detailing the review<br />

work and conclusions can also be found on the full version of our <strong>2010</strong> <strong>Sustainable</strong> <strong>Development</strong> <strong>Report</strong>.<br />

Enhance our value creation 2008 2009 <strong>2010</strong><br />

lead in <strong>Sustainable</strong> Construction<br />

Production covered with the Co2 footprint tool (%) (1) -- -- 58 100<br />

Targets<br />

2015 Progress Assurance<br />

Cement -- -- 100 100 l<br />

Aggregates -- -- 50 100<br />

Ready-mix concrete -- -- 32 100<br />

Co2 footprint - Annual average<br />

Cement (Kg CO2e per ton cement) -- -- 798<br />

Aggregates (Kg CO2e per ton aggregates products) -- -- 5.3<br />

Ready-mix (Kg CO2e per m 3 ) -- -- 298<br />

Targets<br />

Manage our footprint 2008 2009 <strong>2010</strong> 2015 Progress Assurance<br />

Enhance our Carbon Strategy<br />

Absolute net CO2 emissions (million metric tons) (2) 48.2 39.7 41.0<br />

Specific net CO2 emissions (kg CO2/metric ton of cementitious product) (2) 654 627 629 602<br />

Reduction in CO2 emissions per ton of cementitious product from 1990<br />

baseline (%)<br />

17.4 20.7 20.5 25<br />

Thermal energy efficiency of clinker production (MJ/ton clinker) (2) 3,741 3,693 3,696<br />

Alternative fuels rate (%) (2) 10.3 16.4 20.3 35 (5)<br />

Alternative fossil fuels rate (%) 8.6 13.2 15.7<br />

Biomass fuels rate (%) 1.7 3.2 4.6<br />

Alternative raw material rate (%) (2) 12.0 12.2 11.8 12<br />

Clinker / cement factor (%) (2) 75.4 75.2 75.9<br />

l We have achieved our target We are currently on track to achieve our target l Extra effort required to achieve target


Excellence in Environmental and biodiversity Management<br />

Clinker produced with continuous monitoring of major emissions:<br />

Dust, NOx and SOx (%) (2)<br />

2008 2009 <strong>2010</strong><br />

44 60 74 100<br />

Targets<br />

2015 Progress Assurance<br />

Specific Dust emissions (g/ton clinker) (2) 162 106 89 155 (6) l<br />

Specific NOx emissions (g/ton clinker) (2) 1,742 1,063 1,134 1,667 (6) l<br />

Specific SOx emissions (g/ton clinker) (2) 484 410 334 519 (6) l<br />

Active sites with quarry rehabilitation plans (%) 46 82 85 100<br />

Active quarries within or adjacent to high biodiversity value areas (#) NA 112 105<br />

Active sites with high biodiversity value where biodiversity plans are implemented<br />

(%)<br />

NA 29 38 100<br />

Operations with water recycling systems (%) (3) 82 76 85<br />

Environmental investment (US million) (4) $62 $77 $93<br />

Major environmental incidents (#) 19 8 2<br />

Environmental non-compliance cases (#) 67 67 65<br />

Associated fines (US million) 4.1 1.3 1.4<br />

Operations with an Environmental Management System implemented (%) (3) 30 50 76<br />

Targets<br />

Engage our stakeholders 2008 2009 <strong>2010</strong> 2015 Progress Assurance<br />

High priority to Health & Safety<br />

Total fatalities, employees, contractors, and third parties (#) 45 33 46 l<br />

Fatality rate, employees (per 10,000 employees) 1.16 1.56 0.43<br />

Lost-Time Injuries (LTI), employees (#) 654 360 268<br />

Lost-Time Injuries (LTI), contractors (#) 165 154 123<br />

Lost-Time Injury (LTI) frequency rate, employees (per million hours worked) 4.8 3.2 2.6 0.5 (7)<br />

Sickness Absence Rate per employee (%) (8) – 5.2 2.5<br />

% Compliance with CSI Driving Safety Recommended Practices (9) – – 64 100<br />

% Compliance with CSI Contractor Safety Recommended Practices (9) – – 63 100<br />

Operations with a Safety Management System implemented (%) (10) 80 98 98<br />

Operations with a Health Management System implemented (%) (10) 52 76 79<br />

Strengthen local Communities<br />

Sites with community engagement plans (%) 88 85 97<br />

Families participating in Patrimonio Hoy in Latin America (# accumulated) (3) 223,745 263,212 308,311<br />

Mexico (3) 218,637 251,828 294,173<br />

Other Latin American Countries (3) 5,108 11,384 14,138<br />

(1) The CO2 Footprint tool was implemented in <strong>2010</strong>. All figures are based on 2009 volumes. In October <strong>2010</strong>, DNV performed the certification of our carbon footprint calculation methodology based<br />

on data from 2009. CEMEX has established a target of 100% implementation by the end of 2011.<br />

(2) Only cement operations<br />

(3) Historic figures recalculated due to an improvement in measurement, as well as changes in the consolidation perimeter (increase in the number of sites reporting)<br />

(4) Include environmental, alternative fuels and cementitious material investments<br />

(5) Target and year of compliance updated from 2020 to 2015, given 15% was achieved in 2009.<br />

(6) As emission targets for 2015 have been already met, CEMEX is undergoing a thorough analysis of its operations and market developments to set new, challenging targets for 2015.<br />

(7) A new target of 0.5 has been established to ensure we continue to work towards our ultimate goal of zero LTIs.<br />

(8) We believe that the previous Health Indicator for “% employees participating in annual medical exams” was difficult to progress globally given the difficulty in some countries to legally conduct<br />

these exams for workers. A new indicator showing our employee sickness absence rate is universally tracked and was agreed to be a more relevant indicator to measure our progress in health.<br />

(9) Having achieved close to 100% of the previous target “% of operations with safety training programs for drivers”, new KPIs to track our progress in complying with the CSI Driving and Contractor<br />

standards were introduced.<br />

(10) In <strong>2010</strong>, the separate Health and Safety Management Systems were combined to create a single HSMS, hence a new KPI tracking implementation progress of this new system was introduced.<br />

NA = Data not available<br />

5<br />


6<br />

—<br />

sustainability<br />

viSiON and model<br />

CEMEX’s sustainability model<br />

We have three main sustainability objectives:<br />

Enhance Our value Creation: CEMEX aims to<br />

deliver the innovative, high-performing<br />

products, services, and solutions that<br />

our resource-constrained society<br />

requires in order to create a growing<br />

and profitable low-carbon economy.<br />

By fulfilling the needs of the construction<br />

sector in its efforts to adopt more<br />

sustainable operating practices, we<br />

aim to create long-lasting competitive<br />

advantages.<br />

SUSTAINABILITY<br />

AT CEMEX<br />

ENHANCE OUR MANAGE OUR<br />

VALUE CREATION FOOTPRINT<br />

ENGAGE OUR<br />

STAKEHOLDERS<br />

Envisioning a sustainable future<br />

As a leading company in the<br />

global building materials<br />

industry, CEMEX is positioned<br />

at the convergence of great<br />

environmental and social<br />

challenges.<br />

given the importance of the sustainability-related challenges<br />

that society is facing, CeMeX has integrated sustainability into its<br />

business strategy. with the help of our sustainability Model, we<br />

are incorporating sustainability practices into all of our day-today<br />

operations and decision-making processes worldwide. our<br />

model ensures that we concentrate our efforts and resources<br />

on the issues of highest relevance to our business and greatest<br />

concern to our stakeholders.<br />

Manage Our Footprint: CEMEX strives to minimize<br />

the ecological impacts of its operations on the<br />

communities in which it operates. Such impacts<br />

are carefully identified and measured so that we<br />

can continuously reduce our footprint to the<br />

lowest level that is both technically and economically<br />

feasible. We also have a robust pipeline of<br />

projects that provide carbon offsets to further<br />

reduce our net impact.<br />

Engage Our Stakeholders: CEMEX fosters positive,<br />

long-term relationships with key stakeholders<br />

to address the pressing needs and concerns of<br />

society. With a highly committed and empowered<br />

employee base, CEMEX closely collaborates with<br />

a broad variety of institutions that allow us to<br />

complement our core competences and enable<br />

us to generate social benefits that contribute to<br />

strengthening local communities.


CEMEX’s sustainability priorities<br />

We have identified seven priorities in our Sustainability Model. The<br />

definition of these priorities has followed a structured process of<br />

both internal and external consultations where we have measured<br />

the impact that the main sustainability issues have on our stakeholders<br />

and on CEMEX operations. For this matter, we have performed a<br />

Materiality Analysis which is furthermore explained in our About this<br />

<strong>Report</strong> section.<br />

Our seven priorities aligned to each of our three objectives are the<br />

focus of our <strong>2010</strong> <strong>Sustainable</strong> <strong>Development</strong> <strong>Report</strong>:<br />

CEMEX’s key stakeholders<br />

By building strong, long-term relationships with our key stakeholders, we<br />

increase our responsiveness to their needs and concerns, find new ways<br />

to reduce our impacts, contribute to sustainable development worldwide,<br />

and make CEMEX a more competitive and profitable enterprise.<br />

Enhance our Value Creation:<br />

n Lead in <strong>Sustainable</strong> Construction<br />

n Low-Income Housing & Infrastructure<br />

Manage our footprint:<br />

n Enhance Our Carbon Strategy<br />

n Excellence in Environmental & Biodiversity Management<br />

Engage our Stakeholders:<br />

n High Priority to Health & Safety<br />

n Strengthen Local Communities<br />

n Partnership with Key Stakeholders<br />

Our People<br />

We aim to be the employer of choice in our markets. We seek to provide<br />

the most attractive opportunities for employees’ personal and<br />

professional development.<br />

Our neighbors<br />

We are a good neighbor. We participate with communities openly<br />

and directly in order to build trust and address their concerns.<br />

Our business Partners<br />

We work to be the business partner of choice. We seek to help our<br />

suppliers and customers build their businesses and to create enduring<br />

value for our shareholders.<br />

Our World<br />

We are a good global citizen. As a global company, we work to contribute<br />

to international efforts to address some of the world’s most<br />

complex challenges, including climate change, access to housing<br />

and community infrastructure, and the conservation of biodiversity.<br />

7<br />


8<br />

—<br />

LEAD in sustainable<br />

construction<br />

in <strong>2010</strong>, we introduced the first carbon footprint<br />

tool in the industry<br />

58%<br />

of our total worldwide<br />

production has implemented<br />

the tool<br />

As the largest producer of concrete in the world, CEMEX sees an enormous<br />

opportunity in the future of the global construction industry.<br />

However, along with this opportunity, comes a corresponding responsibility.<br />

CEMEX is rising to the challenge with a three-part strategy to:<br />

n develop better building products and solutions<br />

n support the design and renovation of buildings<br />

n promote and enable sustainable urban planning<br />

develOPInG betteR buIldInG PROduCtS and SOlutIOnS<br />

Led by our Global Center for Technology and Innovation in Switzerland,<br />

CEMEX technology centers around the world are creating a range<br />

of innovative concrete products to meet the construction industry’s<br />

growing demand for high-performance, low-carbon building solutions.<br />

Some of our most relevant offerings are: self-compacting concrete,<br />

insulating concrete forms, impervious concrete (Impercem®), highstrength<br />

concrete, specially designed high-performance concrete, permeable<br />

concrete, structural insulation concrete, and low CO2 footprintself<br />

compacting and easy compacting concrete, among others.<br />

SuPPORtInG tHe deSIGn and RenOvatIOn OF buIldInGS<br />

Given the challenge to develop not only sustainable building materials,<br />

but also more sustainable buildings, we have taken a leadership<br />

role in several partnerships and policy organizations focused on<br />

sustainable building and development, including:<br />

n The World Business Council for <strong>Sustainable</strong> <strong>Development</strong>’s<br />

(WBCSD) Energy Efficiency in Buildings initiative to set new standards<br />

for the use of energy in buildings<br />

n The establishment of the Concrete Sustainability Hub at the Massachusetts<br />

Institute of Technology that conducts research to examine<br />

and quantify benefits and savings from better use of concrete in<br />

buildings and pavements from a total life cycle cost perspective<br />

n Our partnership with the World Green Building Council to further<br />

promote the mainstreaming of sustainable construction practices<br />

through the conference “Key Challenges for Construction in the<br />

21st Century” during the <strong>2010</strong> COP16 meeting in Cancun, Mexico<br />

PROmOtInG SuStaInable uRban PlannInG PRaCtICeS<br />

<strong>Sustainable</strong> development, especially the planning and development<br />

of more sustainable cities, may present the greatest challenge of the<br />

21st century—one that will only be met if multiple stakeholders work<br />

together. With this in mind, we have taken the first steps towards this<br />

collaboration by participating as co-chair in the Urban Infrastructure<br />

Initiative created by the WBCSD. Additionally, during COP16, CEMEX<br />

presented “a vision of the city of the future.” Our exhibit showcased<br />

how concrete’s properties make it an ideal material for building<br />

sustainable cities, including infrastructure for clean energy sources,<br />

transportation infrastructure, energy efficient buildings, sustainable<br />

urban design and infrastructure, and industrial ecology systems.<br />

www.cemex.com/<strong>Sustainable</strong><strong>Development</strong>/CityOfTheFuture.aspx<br />

Established in 1991, the CEMEX Building Awards recognize outstanding<br />

construction projects and the talented individuals who<br />

contribute to their creation. The <strong>2010</strong> first-place winners in the<br />

sustainable construction category were the Split University Library<br />

in Croatia and the Ecological Interpretive Center in “El Cielo”<br />

Biosphere Reserve in Mexico. www.cemexbuildingaward.com<br />

new CO2 footprint tool measures the greenhouse gas<br />

emissions of our building materials<br />

In <strong>2010</strong>, CEMEX introduced a carbon footprint tool, the first of its kind<br />

in the building materials industry. The tool measures emissions from<br />

“cradle-to-gate”—from raw material sourcing to the release of the<br />

finished product at the factory gate—which allows CEMEX to track the<br />

greenhouse gas emissions of all of its cement, ready-mix concrete, and<br />

aggregates products. We developed the carbon footprint methodology<br />

to help our customers calculate the footprint of their projects, perform<br />

a benchmark of company facilities, and collaborate with our clients in<br />

the selection of materials. CEMEX has implemented the carbon footprint<br />

tool at 629 sites worldwide, representing 58% of our company’s production<br />

(1) . CEMEX’s footprint tool has already been implemented in all of<br />

our operating cement plants, and is currently being rolled out across our<br />

ready-mix and aggregates operations worldwide.<br />

CemeX’S InItIal GReenHOuSe GaS emISSIOnS FOOtPRInt (1)<br />

n raw materials n energy, fuel & others n transportation n direct emissions<br />

euROPe 714<br />

809<br />

ameRICaS<br />

881<br />

aSIa / me<br />

261<br />

euROPe<br />

329<br />

ameRICaS<br />

323<br />

aSIa / me<br />

3.5<br />

euROPe<br />

5.8<br />

ameRICaS<br />

8.0<br />

aSIa / me<br />

Cement Ready-mIX aGGReGateS<br />

Kg CO2e/ton Kg CO2e/m 3 Kg CO2e/ton<br />

(1) Calculated CO2e for<br />

CEMEX operations,<br />

based on sites already<br />

implemented, using<br />

2009 data.<br />

In addition to the DNV<br />

certification standards,<br />

we considered the stilldeveloping<br />

requirements<br />

of the draft versions of<br />

ISO 14067 and the WBC-<br />

SD/WRI GHG protocol<br />

“Product Life Cycle Accounting<br />

and <strong>Report</strong>ing<br />

Standard” Review Draft<br />

for Stakeholder Advisory<br />

Group November 2009.


HelPInG tO elImInate HOuSInG deFICIt<br />

CEMEX’s housing strategy is designed to address the significant<br />

housing deficits in developing countries and demolish paradigms<br />

that limit the affordability of home ownership for low-income families<br />

by establishing cooperative relationships with key stakeholders:<br />

n Working with communities: Through microfinance, training,<br />

equipment, technology, and expertise, CEMEX enables lowincome<br />

individuals to build homes, businesses, and stronger<br />

communities.<br />

n Working with developers: Working hand-in-hand with private developers,<br />

CEMEX brings needed resources, technology, and knowhow<br />

to the development of low-incoming housing. In Mexico, the<br />

CEMEX Vivienda initiative supported developers in building 1,502<br />

houses in <strong>2010</strong>—170% more than in 2009.<br />

n Attracting private investment: By orchestrating joint efforts between<br />

financial institutions, governments, NGOs, developers, and<br />

communities, CEMEX develops significant housing projects that<br />

provide a step towards homeownership and a decent standard of<br />

living for low-income people.<br />

We support social and economic progress, especially in the developing<br />

countries where we operate by helping to build affordable housing<br />

and better, more modern, and durable community infrastructure.<br />

Developing prototypes for affordable housing<br />

CEMEX housing experts have developed the San<br />

Marcos prototype—consisting of a living room, two<br />

bedrooms, kitchen, and bathroom—which offers 35<br />

square meters of living space expandable up to 84<br />

square meters. Designs based on precast concrete<br />

forms make the structures sound, fast, and economical<br />

to build. The use of special products such as our sealing<br />

and water proofing Impercem® and Hidratium® and<br />

our antibacterial concrete add to the soundness and<br />

safety of these structures. During autumn <strong>2010</strong>, the San<br />

Marcos prototype was tested as part of the Nuevo Leon<br />

Reconstruction Program for victims of Hurricane Alex.<br />

San Marcos prototype: 35m 2 basic housing unit<br />

low-income HOUSiNG<br />

and iNFRASTRUCTURE<br />

10<br />

+1,500<br />

million square meters of urban<br />

and highway concrete paving<br />

completed in Mexico in <strong>2010</strong><br />

houses built in Mexico with<br />

support of CEMEX Vivienda<br />

PaRtneRInG tO maKe HIGH-SCale InFRaStRuCtuRe a RealIty<br />

CEMEX works with governments to identify, coordinate, and develop<br />

infrastructure projects. In addition to our building materials, technical<br />

expertise, and equipment, we also bring turnkey solutions to<br />

high-scale infrastructure projects. Our involvement spans the entire<br />

life cycle: from originating new projects and helping to secure and<br />

structure financing through third-parties to executing and managing<br />

construction—and, in some cases, maintenance and toll road<br />

operation. Ultimately, we provide greater value for our public and<br />

private sector clients—offering the cost-effective, comprehensive<br />

solutions they need—while creating a competitive advantage and<br />

generating new market opportunities for CEMEX. In Mexico, we supported<br />

the completion of 7 million square meters of urban concrete<br />

paving and over 3 million square meters of highway concrete paving<br />

in <strong>2010</strong>. Over the past 15 years, we have participated in 70 concrete<br />

road-building projects that have created 10,000 lane-kilometers of<br />

pavement surface for highways alone.<br />

Rebuilding infrastructure in tijuana, Mexico<br />

CEMEX was a moving force in the recently completed<br />

Comprehensive Road Rehabilitation Project or PIRE (Programa<br />

Integral de Repavimentación) in Tijuana, Mexico, to<br />

rehabilitate and upgrade some 126 kilometers of the city’s<br />

urban roadways. The use of concrete rather than asphalt in<br />

the project provided a more sustainable solution, as concrete<br />

allows for greater durability, safety, and light reflection,<br />

lower fuel consumption and temperatures, as well as lower<br />

lifecycle costs. CEMEX coordinated the environmental certification<br />

required for the project to obtain more than US$110<br />

million in financing from the North American <strong>Development</strong><br />

Bank and the Border Environment Cooperation Commission.<br />

9<br />


10 —<br />

ENHANCE our<br />

carbon STRATEGY<br />

20.3%<br />

20.5%<br />

To reduce the overall carbon footprint of our operations, we have<br />

long been engaged in a multi-pronged approach, chiefly by:<br />

n replacing traditional fossil fuels with lower-emission alternatives<br />

n reducing the clinker content in cement<br />

n increasing our use of renewable electricity<br />

n exploring new carbon-reduction technologies and policies<br />

uSInG alteRnatIve FuelS tO ReduCe emISSIOnS<br />

By replacing traditional fossil fuels with alternative fuels that are less CO2<br />

intensive or that recover energy from waste, we are measurably reducing<br />

both our CO2 emissions and our fuel costs. We have quadrupled our<br />

use of alternative fuels since 2005. In <strong>2010</strong> alone, the share of alternative<br />

fuels in our total fuel mix reached 20.3% compared to 16.4% in 2009.<br />

Cement kilns are ideal for safely disposing of—and capturing the<br />

recoverable energy in—waste materials, while avoiding landfilling. To<br />

ensure the environmentally and socially responsible use of alternative<br />

fuels in our kilns, CEMEX has established corporate guidelines<br />

that reflect best practices. We also engage with our communities to<br />

address their concerns and explain how the use of cement kilns for<br />

waste disposal is an environmentally friendly solution. We further<br />

meet with regulators to ensure that our use of alternative fuels is fully<br />

compliant with all applicable policies and regulations.<br />

alteRnatIve FuelS SubStItutIOn Rate<br />

percentage<br />

yeaR<br />

06<br />

07<br />

08<br />

09<br />

10<br />

15<br />

6.6<br />

7.6<br />

10.3<br />

alternative fuels<br />

substitution rate<br />

reduction of net Co2 specific<br />

emissions, compared to our<br />

1990 baseline<br />

16.4<br />

20.3<br />

We have established a new 2015<br />

target at 35% to reflect the ambitious<br />

program we have in place in<br />

all our worldwide operations.<br />

taRGet<br />

35.0<br />

ReduCInG OuR ClInKeR FaCtOR tO Cut emISSIOnS<br />

We continue our efforts to reduce CO2 emissions by replacing clinker<br />

with alternative cementitious materials such as fly ash, a by-product<br />

of coal-fired power stations, blast furnace slag, a by-product of the<br />

steel industry, and naturally occurring pozzolanic materials. In 1990,<br />

clinker comprised 84% of our cement; by <strong>2010</strong>, we had reduced the<br />

clinker content of our cement to 76%.<br />

InCReaSInG ReneWable eleCtRICIty uSe<br />

CEMEX is committed to securing renewable electricity sources.<br />

About 25% of the total electricity consumed by our Mexican cement<br />

operations comes from EURUS, a 250-megawatt wind farm located<br />

in Oaxaca, Mexico, developed jointly by CEMEX and ACCIONA.<br />

Additionally, our cement plant in Panama consumes only electricity<br />

sourced from hydropower. Moreover, in Rüdersdorf, Germany, a<br />

waste-to-energy plant was built for purpose of providing electricity<br />

to our neighboring cement plant.<br />

eXPlORInG neW CaRbOn ReduCtIOn OPtIOnS and POlICIeS<br />

In 2009, the US Department of Energy’s National Energy Technology<br />

Laboratory granted CEMEX funding to conduct groundwork for<br />

the development and demonstration of a commercial-scale carbon<br />

capture and storage (CCS) project at CEMEX’s Odessa cement plant<br />

in Texas. This study, completed in <strong>2010</strong>, concluded that commercial<br />

scale CCS in the cement industry is not yet ready for deployment and<br />

that significant research and development, public-private cooperation,<br />

and funding, as well as policy changes, will be required for CCS<br />

to realize its potential.<br />

Additionally, CEMEX has successfully registered four Clean <strong>Development</strong><br />

Mechanism (CDM) projects, for a total reduction of 850,000<br />

tons of CO2 per year. Achieved in December <strong>2010</strong>, the latest United<br />

Nations Framework Convention on Climate Change approval is for a<br />

project at our Zapotiltic, Mexico, cement plant, where alternative fuels<br />

will be used to substitute petcoke. CEMEX has a pipeline of more<br />

than a dozen additional CDM projects under development.<br />

CEMEX is a leading participant in the following initiatives:<br />

n The WBCSD Cement Sustainability Initiative (CSI), where cement<br />

companies work to find solutions to the sustainability issues most<br />

important to the industry. CEMEX chairs its Communications and<br />

Concrete Task Forces.<br />

n “Getting the Numbers Right”, developed through the WBCSD’s CSI,<br />

provides verified data on the cement industry CO2 emissions.<br />

n The Steering Committee of the UN Caring for Climate Initiative,<br />

through which business leaders and government decision-makers<br />

discuss practical climate change solutions.<br />

n The Prince of Wales’s Corporate Leaders’ Group on Climate Change is<br />

a cross-sectorial group of business leaders participating at the highest<br />

levels of policy debate surrounding climate change.<br />

n The Carbon Disclosure Project is a voluntary initiative that requests<br />

annual information on climate change risk management and<br />

performance.


ImPlementInG a CuStOmIzed envIROnmental<br />

manaGement SyStem<br />

We are committed to responsible stewardship of the land we use<br />

and manage and to conduct our operations in a sustainable manner.<br />

Over the past year, a team of CEMEX professionals has worked<br />

to develop a customized Environmental Management System (EMS)<br />

that is compatible with ISO 14001. Pilot implementation of the new<br />

EMS will begin in 2011, with global rollout in 2012. The new EMS will<br />

set a standard approach for managing air quality, water use, waste<br />

management, environmental disturbances, environmental incidents,<br />

and biodiversity in order to:<br />

n ensure legal compliance<br />

n identify environmental issues and their impacts<br />

n establish objectives, targets, and corresponding action plans<br />

n ensure compliance with CEMEX’s standards and guidelines<br />

n improve performance and common reporting<br />

aCHIevInG aIR emISSIOnS taRGetS aHead OF SCHedule<br />

We have invested in equipment to reduce major emissions, identified<br />

current situation for minor emissions at cement kilns, developed<br />

guidelines for handling fuels and emissions, participated in industrybased<br />

initiatives, and reported emissions in accordance with the CSI<br />

protocol. By controlling and monitoring emissions, we have achieved<br />

significant reductions in dust, NOx and SOx emissions ahead of our<br />

2015 target date. In <strong>2010</strong>, we achieved a 16% reduction in dust<br />

emissions a 19% reduction in SOx emissions.<br />

a COmPReHenSIve aPPROaCH tO WateR manaGement<br />

In <strong>2010</strong>, we began a partnership with the International Union<br />

for Conservation of Nature to strengthen our approach to water<br />

issues and develop a corporate water strategy as well as the<br />

tools—operating standards and guidelines, measurement protocols<br />

and key indicators, best practices, and training materials—we<br />

need to implement the strategy. The first phase, to be completed<br />

in 2011, will:<br />

n more precisely assess CEMEX’s global water footprint<br />

n map operational sites against key water issues<br />

n analyze water trends and stakeholders’ expectations<br />

n explore our road in contributing to watershed management<br />

n identify highest priority issues and strategy to address them<br />

aCHIevInG SIGnIFICant ReduCtIOnS In WaSte dISPOSal<br />

Another growing global challenge is the safe and efficient disposal<br />

of society’s waste products. At CEMEX, we have adopted a manifold<br />

waste-reduction strategy based on the philosophy of monitor, minimize,<br />

reuse, and recycle. In <strong>2010</strong>, this strategy enabled us to reduce<br />

hazardous waste by 11% and non-hazardous waste by 9%, saving<br />

significant resources and money.<br />

(1) Category 1 incidents are defined as major uncontrolled spills or releases beyond site boundary<br />

in breach of internal control procedures that might result in legal action and threat to operating<br />

license. Part of this reduction is due to the reduction in the number of sites operating during<br />

<strong>2010</strong> as a result of temporary site closures and divestment from our Australia operations.<br />

excellence in<br />

ENviRONMENTAL &<br />

BiODivERSiTY<br />

management<br />

543<br />

85%<br />

sites were evaluated for their proximity<br />

to high biodiversity value areas<br />

of our active cement and aggregates sites<br />

have quarry rehabilitation plans in place<br />

StRIvInG tOWaRdS zeRO envIROnmental InCIdentS<br />

By combining technology and careful planning, we minimize disturbances<br />

such as noise, vibration, vehicular traffic, aesthetics, and<br />

fugitive dust. Our goal of zero environmental incidents is a priority<br />

throughout CEMEX—a responsibility that extends from our top management<br />

team to each individual operator. In <strong>2010</strong>, we reduced the<br />

number of Category 1 1 incidents to only 2, from 8 incidents in 2009.<br />

maKInG PROGReSS tOWaRdS OuR quaRRy ReHabIlItatIOn<br />

We are committed to implement quarry rehabilitation plans at all of<br />

our operating sites by 2015. At year-end <strong>2010</strong>, 85% of our sites had<br />

such plans in place. In addition, we continue to work with our industry<br />

peers in the CSI to establish Quarry Rehabilitation Guidelines and<br />

help raise the standard of rehabilitation projects.<br />

Prioritizing sites with high biodiversity value<br />

In <strong>2010</strong>, CEMEX and our partners at BirdLife International<br />

completed a multi-year scoping study on the biodiversity<br />

status of our worldwide operations. The Biodiversity Scoping<br />

Study prioritizes 543 cement and aggregates operations<br />

in terms of biodiversity sensitivity and opportunities, based<br />

on both their proximity to areas of importance for biodiversity<br />

and their current management practices. Among the<br />

practical outputs of the study are maps and databases that<br />

provide detailed information on the biodiversity characteristics<br />

of each operational site that will enhance site-level land<br />

management decision making. The scoping study provides<br />

the baseline analysis from which the strategy is to progressively<br />

implement biodiversity action plans (BAPs) for 131 sites<br />

that overlap with important biodiversity areas, starting with<br />

12 priority sites. Ultimately, CEMEX’s objective is for 100% of<br />

these 131 sites to have a BAP in place by 2015.<br />

11 —


12 —<br />

high priority to<br />

HEALTH and SAFETY<br />

19%<br />

40%<br />

decrease in employee lti<br />

frequency rate in <strong>2010</strong><br />

decrease in lost work days<br />

We are committed to making CEMEX a safer workplace and to supporting<br />

all aspects of the health and well-being of our employees,<br />

contractors, and third parties.<br />

a SyStematIC aPPROaCH tO manaGInG HealtH and SaFety<br />

As part of our continuous effort to strengthen line ownership and accountability<br />

for health and safety by line management, we developed the<br />

CEMEX Health and Safety Management System (HSMS) in <strong>2010</strong>. Aligned<br />

with OHSAS 18001, the HSMS clearly sets out the company’s expectations<br />

in terms of health and safety management and provides guidance and<br />

tools to help managers reduce risk in their operations through:<br />

n risk assessments<br />

n system audits and site inspections<br />

n health and safety training and development<br />

n performance monitoring and tracking<br />

n emergency preparedness<br />

n incident investigation<br />

n sharing of lessons learned and best practices<br />

HSmS manaGement SyStem FRameWORK<br />

The HSMS framework outlines<br />

CEMEX’s commitment to<br />

Health and Safety and<br />

the requirements of<br />

top management for<br />

the effective management<br />

of health<br />

and safety, as well as<br />

incident prevention.<br />

tHe 14 elementS OF tHe<br />

CemeX H&S manaGement<br />

SyStem FRameWORK<br />

Operation<br />

control<br />

Incident invest.<br />

& reporting<br />

prevention<br />

Emergency<br />

management<br />

Std. operating<br />

procedures<br />

Document<br />

control<br />

Audits, inspect.<br />

& continuous<br />

improvement<br />

Communication<br />

& consultation<br />

Leadership &<br />

People, training<br />

& behaviours<br />

1 2 3 4 5 6 7 8 9 10 11 12 13 14<br />

REVIEW<br />

accountability<br />

Health<br />

Risk<br />

management<br />

Regulation<br />

policies<br />

Driving<br />

safety<br />

Contractor<br />

Management<br />

P L A N N I N G IMPLEMENTATION & OPERATIONS CHECKING MANAGEMENT<br />

ImPROvInG SaFety tHROuGHOut OuR OPeRatIOnS<br />

CEMEX has steadily reduced on-site employee injuries and fatal<br />

incidents. In <strong>2010</strong>, there were two on-site employee fatalities and<br />

zero employee or contractor fatalities from working at height.<br />

However, we must significantly improve the safety of our transport<br />

activities and management of contract drivers. We deeply regret<br />

the deaths of 46 employees, contractors, and third parties in connection<br />

with CEMEX activities in <strong>2010</strong>.<br />

In <strong>2010</strong>, we had a lost-time injury (LTI) rate of 2.6 and lost the<br />

equivalent of approximately 15,600 work days. While this rate<br />

slightly exceeds our target for <strong>2010</strong> of 2.5, it marks a significant<br />

improvement over 2009. Thanks to this progress, fewer people<br />

were injured, their injuries were less severe, and they were able to<br />

return to work more quickly. In 2011, we will focus on improving<br />

reporting and investigation of all injuries and near misses to better<br />

identify the root and system causes of incidents that typically<br />

result in lost-time injuries.<br />

We aPPly ROOt-CauSe analySIS tO leaRn FROm InCIdentS<br />

Over the past two years, we have steadily improved our use of rootcause<br />

investigation tools and methodology to understand why incidents<br />

happen in our operations. In <strong>2010</strong>, root cause investigations<br />

involving line leadership and technical and safety specialists were<br />

completed for every fatal incident, and corrective and preventive action<br />

plans were implemented. To further improve our performance,<br />

we have developed a training program that will not only enable us<br />

to better understand underlying causes of safety incidents, but also<br />

identify aspects of our safety management system that we must<br />

strengthen to prevent future injuries.<br />

SaFety leadeRSHIP PROGRam<br />

Developed in 2009, LEGACY is our company’s in-house flagship<br />

safety leadership program designed to help us achieve our goal<br />

of zero incidents. When fully implemented, LEGACY will equip<br />

managers at all levels with the tools, skills, and behavioral standards<br />

required to lead safer, more efficient operations. In <strong>2010</strong>,<br />

we completed LEGACY training for 2,108 CEMEX supervisors and<br />

managers. Our goal is for everyone in a leadership role to complete<br />

the training by 2015.<br />

dRIvInG and COntRaCtOR SaFety<br />

In 2009, we led the CSI Driving Safety Working Group in its development<br />

of industry-wide standards to address driving risks and<br />

incidents and to measure progress in reducing incidents and injuries.<br />

In <strong>2010</strong>, we immediately began implementation by conducting a<br />

baseline gap analysis across all of the countries in which we operate<br />

to determine the level of compliance with the CSI Recommended<br />

Practices. On average, we achieved 64% compliance with the driving<br />

standards and 63% compliance with the contractor safety standards.<br />

Each country will now implement action plans to achieve 100%<br />

compliance by the end of 2015.


CEMEX Global Safety Awards showcase site excellence<br />

Since 2000, the annual CEMEX Global Safety Awards have recognized business units and country-level operations that have built and<br />

continually improved their safety culture to achieve superior safety performance. Businesses and countries are judged based on six<br />

criteria: safety performance and continual improvement, safety leadership, innovative practices to reduce risk, incident investigation,<br />

analysis, and follow-up and near-miss reporting.<br />

sECTOr BEsT saFETy PErFOrmaNCE mOsT ImPrOVED saFETy PErFOrmaNCE<br />

Cement Patarra Plant (Costa Rica) San Pedro de Macoris Plant (Dominican Republic)<br />

Chelm Plant (Poland)<br />

Ready Mix Concrete Country Concrete Operations (Ireland) Monterrey Concrete Plant (Mexico)<br />

Aggregates South Region (UK) Rhein-Main-Donau Region (Germany)<br />

Logistics Aggregates West and Southwest Region (UK) Colombia<br />

Ireland<br />

Other lines of business Terminals and Warehouses (Spain) Indianapolis Pipe Plant (USA)<br />

Country Awards Ireland Austria<br />

InveStInG In OCCuPatIOnal and PReventIve HealtH CaRe<br />

Our goal is to improve each employee’s health by offering beneficial occupational<br />

and preventive health programs and empowering all of our<br />

employees to improve their personal health by raising awareness, providing<br />

information, and offering assistance. Based on the work of our global<br />

health council and other stakeholder feedback, in 2008, we established<br />

the global Health Essentials initiative to address the 12 most important<br />

occupational and preventive health issues our people face every day. Additionally,<br />

all of our health programs—whether voluntary or required by<br />

local law—are designed according to four basic principles that we have<br />

integrated into our HSMS: information and promotion of health topics,<br />

vaccinations, timely diagnosis, and rehabilitation.<br />

HelPInG emPlOyeeS ReduCe and manaGe tHeIR StReSS<br />

CEMEX is applying 12 years of research on various aspects of stress<br />

to help employees reduce and manage their stress levels. We offer<br />

seminars, a stress-diagnosis tool, and an online course for stress<br />

management.<br />

54% employees participating in annual<br />

medical exams, a 23% increase from 2009<br />

2.5 absenteeism rate by general<br />

disease, a 52% reduction from 2009<br />

96% operations with a qualified<br />

health professional onsite or with access to<br />

an external health provider, unchanged<br />

from 2009<br />

13 —


14 —<br />

strengthen local<br />

COMMUNiTiES<br />

45,099<br />

97%<br />

families improved<br />

their homes through<br />

Patrimonio hoy in <strong>2010</strong><br />

of our operations have Community<br />

engagement Plans<br />

CEMEX’s operations are often an important part of local communities.<br />

We employ community members, work with local suppliers, and<br />

contribute to the community through tax payments, social investments,<br />

and on-the-ground programs. Our social-investment programs<br />

yield positive economic and environmental returns, promote<br />

citizenship, empower people, and help build a foundation for longterm<br />

well-being. Community relations are managed at the country<br />

level, which helps us to identify the communities near our operations,<br />

our impacts on them, and their needs; and then develop and<br />

implement effective, site-specific social programs. Approximately<br />

97% of our operations have Community Engagement Plans.<br />

PROmOtInG aCCeSS tO buIldInG mateRIalS and SeRvICeS<br />

One of the most important ways in which CEMEX helps to reduce<br />

global poverty is by providing low-income customers access to<br />

building materials and services. We do this by creating programs that<br />

align the values and commercial objectives of our business with the<br />

needs of the communities we serve—generating long-term benefits<br />

for all. In addition, we advocate policies and financing models that<br />

will enable countries around the world to adopt development plans<br />

based on our programs.<br />

Patrimonio Hoy: much more than a house. Since 1998, Patrimonio<br />

Hoy, our award-winning low-income housing program, has provided<br />

affordable building materials and services and US$169 million in microfinancing<br />

to more than 300,000 families in five countries to build<br />

or improve their homes. In <strong>2010</strong> alone, 45,099 families benefited<br />

from the program. Sixty percent of participants in Mexico say they<br />

would not have been able to build their home without the program.<br />

With more than 100 offices in Latin America, Patrimonio Hoy<br />

promotes local economic development and creates jobs for local<br />

masons, and in particular, it provides opportunities for meaningful<br />

work for women. Most Patrimonio Hoy “promoters”—the individuals<br />

who sell and administer the loans—are women, half of whom had<br />

no work experience prior to joining the program.<br />

ConstruApoyo: a model for disaster response and long-term relief.<br />

Begun in 2005 to provide disaster relief after Hurricanes Stan and<br />

Wilma in Mexico, this program has since been used in other government-subsidized<br />

housing and community infrastructure initiatives<br />

because it is both efficient and transparent. Governments identify<br />

beneficiaries and provide funds for the building or rebuilding efforts,<br />

which CEMEX distributes in the form of debit cards to purchase<br />

building materials at fixed prices. We make results available online<br />

in real time to government officials. By <strong>2010</strong>, approximately 28,000<br />

individuals benefited from ConstruApoyo.<br />

Lazos Familiares: building community institutions. Since 2005, this initiative<br />

has helped communities build and renovate public facilities such as<br />

health centers, hospitals, orphanages, and schools. CEMEX, participating<br />

clients, and distributors donate materials and building assistance. Working<br />

alongside individuals from the communities, employee volunteers<br />

help communities complete the work efficiently. To date, they have<br />

completed more than 45 projects, benefiting more than 33,600 people.<br />

Mejora tu Calle: facilitating community movement. This program<br />

helps communities and governments work together to pay for the<br />

concrete paving of streets and sidewalks. By combining community<br />

contributions with government funding, most projects are completed<br />

in just 70 weeks—much faster than the 10 years it often takes<br />

low-income neighborhoods to complete these projects.<br />

Centros Productivos de Autoempleo (CPA) pursuing do-it-yourself<br />

construction. CEMEX partners with municipal or state authorities,<br />

as well as NGOs and communities, to establish community centers<br />

where low-income families produce concrete blocks and other precast<br />

products; half of which they can use to build, repair, or expand<br />

their homes. Municipal or state governments purchase the other half<br />

for infrastructure development. The resulting proceeds are reinvested<br />

in the centers. In <strong>2010</strong>, we were able to expand this program to Colombia<br />

through a partnership with the Inter-American <strong>Development</strong><br />

Bank, which is providing 35% of the financing for the first 18 months.<br />

Participatants in concrete block production process in a CPA in Mexico


CEMEX honored at the World business and<br />

<strong>Development</strong> Awards<br />

In <strong>2010</strong>, the World Business and <strong>Development</strong> Awards—<br />

organized by the United Nations <strong>Development</strong> Program, the<br />

International Chamber of Commerce, and the International<br />

Business Leader Fund—recognized CEMEX for its contributions<br />

to achieving the Millennium <strong>Development</strong> Goals<br />

through programs that foster and facilitate development,<br />

including Centros Productivos de Autoempleo.<br />

SuPPORtInG eduCatIOn and tRaInInG OPPORtunItIeS<br />

In <strong>2010</strong>, in partnership with the Tecnológico de Monterrey, we completed<br />

the CEMEX-Tec Center for <strong>Sustainable</strong> Community <strong>Development</strong><br />

to promote collaboration between the public, private, and academic<br />

sectors in order to support innovative solutions to challenges in this<br />

field. In addition, several of CEMEX’s country operations granted scholarships<br />

and supported educational chairs at local universities in the areas<br />

of architecture, sustainable construction, and corporate responsibility.<br />

PROmOtInG SelF-emPlOyment and mICRObuSIneSSeS<br />

As part of our efforts to improve local communities and promote selfsufficiency,<br />

we provide resources and advice for motivated individuals<br />

to start locally based microbusinesses. For example, at the Community<br />

Center of our cement plant in Torreon, Mexico, 20 students enrolled in<br />

the sewing and dressmaking course have made and sold more than<br />

3,000 uniforms for workers at the cement plant. Now, they are beginning<br />

to produce uniforms for local schools, and have applied for a loan<br />

from a government-run development bank to formalize their business<br />

entity and continue their growth. Moreover, in Colombia, 80 women<br />

and men who have participated in our educational programs have<br />

become CEMEX suppliers, providing environmental and maintenance<br />

services, performing work at height and in pre-blasting preparations,<br />

and selling uniforms and industrial safety clothing.<br />

FOSteRInG lOCal envIROnmental aWaReneSS<br />

We invest in environmental awareness, conservation, biodiversity preservation,<br />

and reforestation. In <strong>2010</strong>, among other initiatives, we provided<br />

assistance to build an interactive learning facility on marine ecosystems<br />

in the Philippines; organized events in the UK, France, Latvia, Poland, and<br />

the US that promoted learning about bird species and their habitats;<br />

and we launched our first CEMEX-BirdLife photo competition among<br />

employees to honor the UN International Year of Biodiversity.<br />

enCOuRaGInG emPlOyeeS tO vOlunteeR In tHeIR<br />

COmmunItIeS<br />

In 41% of our operations, we have employee volunteering programs,<br />

and many of the social projects we support depend on their participation.<br />

For example, on Mexico’s “Day of the Tree,” we organize reforestation<br />

brigades in all of our operations nationwide that have greenhouses.<br />

In <strong>2010</strong>, employee volunteers and local community members<br />

planted more than 45,000 trees. Overall, employees in Mexico dedicated<br />

more than 22,000 hours of volunteer work during the year.<br />

CEMEX machinery removes pile of mud and stones from a community<br />

of family homes after Hurricane Alex<br />

Contributing to disaster relief<br />

Our disaster relief efforts provide emergency humanitarian aid<br />

and support long-term reconstruction efforts.<br />

After the January <strong>2010</strong> earthquake, we took immediate<br />

action to support our 115 Haitian employees, their families,<br />

and neighboring communities by donating approximately<br />

US$750,000 from company and employee contributions,<br />

using our vessel “Marianela” to deliver 90 tons of direct aid,<br />

and making heavy machinery available to assist relief teams.<br />

CEMEX has also started the construction of a housing project<br />

for our employees in the country who were left homeless.<br />

In Mexico, we provided recovery assistance to several communities<br />

in the wake of floods in Oaxaca and Veracruz; an<br />

earthquake in Baja California and Sonora; and Hurricane Alex<br />

in Nuevo Leon, Tamaulipas, and Coahuila. Following Hurricane<br />

Alex, we distributed 250 tons of emergency aid and<br />

provided heavy machinery to assist in cleanup efforts. CEMEX<br />

also established Centros Productivos de Autoempleo in 10<br />

municipalities and donated building materials, as well as<br />

equipment and training, to help residents repair and rebuild<br />

damaged homes. More than 7,000 individuals benefited from<br />

this assistance.<br />

Through the national program Colombia Humanitaria, CEMEX<br />

Colombia supported national and local governments and donated<br />

1,205 tons of cement, after severe flooding. In addition,<br />

192 employees collectively donated US$12,000.<br />

In Europe, CEMEX provided Hungary’s Central Disaster Recovery<br />

Office with machinery to help drain water and clear roads.<br />

CEMEX volunteers then donated their services to operate the<br />

equipment. CEMEX also offered special discount prices on all<br />

materials needed for recovery work. Furthermore, in Poland,<br />

CEMEX donated materials to reinforce the flood banks in the<br />

Dobrzykow area and a mobile plant to reinforce flood banks<br />

in Warsaw.<br />

15 —


16 —<br />

partnership with<br />

KEY stakeholders<br />

83%<br />

+600<br />

employee engagement level(1)<br />

initiatives implemented to improve<br />

employees work life and performance<br />

By building strong, long-term relationships with our key stakeholders,<br />

we increase our responsiveness to their needs and concerns.<br />

StRenGtHenInG emPlOyee enGaGement<br />

We ask for our colleagues’ feedback through mechanisms that<br />

include the CEMEX Survey, town hall meetings, global webcasts,<br />

and team briefings. Since 2006, we have conducted the CEMEX<br />

Employee Survey that measures the degree to which employees feel<br />

motivated by their job, supervisors, team, and commitment to stay<br />

with the company and contribute to its success. In <strong>2010</strong>, the Employee<br />

Survey showed an 83% employee engagement level. Guided<br />

by these results, we develop action plans and, in <strong>2010</strong>, 674 initiatives<br />

were implemented or are ongoing based on employee input.<br />

Employees receive equal opportunities at CEMEX<br />

As formalized in our Equal Opportunity Employment Policy, CEMEX<br />

hires, develops, and promotes all employees on an equal-opportunity<br />

basis. To encourage diverse candidates to apply for positions, CEMEX’s<br />

hiring procedures seek candidates from a variety of sources: promoting<br />

open positions to be publicly posted in our job posting site, employee<br />

referrals, local universities, job-search websites, and social media.<br />

As women comprise 13% of CEMEX’s workforce, we have implemented<br />

initiatives to encourage more women to join the company. Over<br />

30 nationalities are represented in senior management, and approximately<br />

60% of senior management positions at significant CEMEX<br />

operations are local hires. In <strong>2010</strong>, approximately 54% of CEMEX<br />

employees were members of an independent union or covered by a<br />

collective bargaining agreement.<br />

HelPInG all emPlOyeeS tO leaRn, GROW, and advanCe<br />

At CEMEX, we promote a culture of consistent high performance<br />

worldwide. To help our employees meet this standard, we provide<br />

them with work experiences, tools, and guidance that allow them to<br />

(1) Engagement level is calculated as an average of the answers to a set of questions. It could<br />

vary from 0-100%.<br />

improve their technical skills and interact effectively. CEMEX offers<br />

and is continually developing an array of instructor-led and online<br />

courses. In <strong>2010</strong>, we developed a Manager Training Program that<br />

focuses on providing basic management tools for collaboration; we<br />

will now offer it to executives at operations around the world. In<br />

addition, during <strong>2010</strong>, more than 350 employees received support to<br />

complete university courses and degrees.<br />

To complement our onsite training efforts, we have a state-of-theart<br />

online learning management system, CEMEX Learning, through<br />

which our employees can design and pursue their individual development<br />

plans. Through CEMEX Learning, over 700 courses are accessible<br />

and available to approximately 19,000 employees worldwide.<br />

CEMEX’s Talent Review is a dialogue-based employee-development<br />

process through which the employee’s performance and potential<br />

are assessed collectively by the employee’s direct supervisor<br />

and peers, as well as the area leader. Over 20% of our executives<br />

and employees have access to a formal online system to register<br />

performance evaluations, and 97% of these employees reported<br />

receiving feedback in <strong>2010</strong>. The remainder of our employees and<br />

operators also receive regular performance evaluations with their<br />

individual managers.<br />

total rewards to attract and help retain the best talent<br />

CEMEX’s reward package is intended to both motivate employees<br />

and recognize their performance. To ensure that our offerings are appropriate,<br />

we consider the total compensation provided by comparable<br />

companies, the labor markets in which a given CEMEX business<br />

unit competes for talent, and data compiled from independent, professional,<br />

third-party surveys. We always comply with local laws and<br />

provide additional health and insurance benefits in over 90% of our<br />

operations and additional pension benefits in 45% of our operations.<br />

Moreover, we are committed to paying the same wages to men and<br />

women who perform similar jobs at the same level of experience, as<br />

evidenced by our male-to-female salary ratio of 1.02—with seniority<br />

accounting for the slight difference.<br />

CEMEX offers employees flexible work arrangements as appropriate to<br />

their particular culture and business unit needs; 69% of our operations<br />

have work-life balance programs, including dependent care, child care,<br />

elderly care, sabbaticals, parental leave, or other flexible time benefits.<br />

OuR GlObal WORKFORCe<br />

At the end of <strong>2010</strong>, CEMEX had 46,533 employees and approximately<br />

14,000 contractors. These numbers reflect voluntary turnover of 6%<br />

and involuntary turnover of 9%. The decision to reduce headcount<br />

was difficult, but necessary to ensure our continued competitiveness.<br />

All restructuring efforts were performed in accordance with<br />

local employment laws and applicable employment agreements.<br />

When significant operational changes required a notice period, we<br />

complied with local employment laws and collective agreements<br />

and provided an average of 30 days’ notice.


Our global workforce<br />

bReaKdOWn by level<br />

percentage<br />

59<br />

l <strong>EXECUTIVE</strong> l NON-<strong>EXECUTIVE</strong> l OPERATIONAL<br />

FOCuSInG On CuStOmeR needS<br />

84%<br />

Loyalty happens by design, not by chance. That’s why we intensely<br />

focus on every customer—whether a construction giant building a<br />

skyscraper or an individual building his family’s first home. From new<br />

value-added cement and ready-mix products, to financial mechanisms<br />

that enable government to build infrastructure, to partnerships<br />

with developers to produce low-income housing, we work<br />

closely with our customers to identify and implement effective ways<br />

to create more value for them. We also use customer surveys, including<br />

end-of-project satisfaction surveys, and ongoing dialogue to gain<br />

a clear understanding of our customers’ needs and preferences. In<br />

<strong>2010</strong>, 84% of the countries in which we operate regularly conducted<br />

customer-satisfaction surveys, up from 78% in 2009.<br />

FOSteRInG SuPPly CHaIn SuStaInabIlIty<br />

93%<br />

84%<br />

5<br />

36<br />

bReaKdOWn by aGe<br />

percentage<br />

of the countries in which we operate regularly<br />

conducted customer satisfaction surveys.<br />

of our purchases were made from<br />

locally and nationally based suppliers.<br />

of the countries in which we operate have<br />

processes to screen suppliers’ social and<br />

environmental practices.<br />

We believe that local sourcing is in and of itself a sustainable business<br />

practice: it creates jobs, which in turn stimulate local economies, while<br />

developing new skills among local workers. Whenever feasible, we support<br />

small and locally based suppliers everywhere we operate; in fact, in<br />

<strong>2010</strong>, 93% of our purchases were made from locally based suppliers.<br />

We recognize that our responsibility for sustainable business practices<br />

extends to the farthest reaches of our supply chain. By <strong>2010</strong>,<br />

84% of the countries in which we operate had processes to screen<br />

suppliers’ social and environmental practices. CEMEX is the only<br />

building materials company that participates in the United Nations<br />

Global Compact (UNGC) Advisory Group on Supply Chain Sustain-<br />

27<br />

22 19<br />

l UNDER 30 l 31-40<br />

l 41-50 l OVER 50<br />

32<br />

bReaKdOWn by SenIORIty<br />

percentage<br />

38<br />

14<br />

19<br />

l


18 —<br />

responsibility for<br />

sustainability at CEMEX<br />

We conduct our business with integrity and act as stewards not only<br />

of our shareholders’ assets, but also of the health and well-being of the<br />

environment, our employees, local communities, and society at large.<br />

Responsibility for sustainability at CEMEX starts at our Board of Directors<br />

and flows all the way through our company to our local operations.<br />

COmPany-WIde POlICIeS and InteRnal manaGement<br />

SyStem tO enSuRe COmPlIanCe<br />

We communicate our expectations and set global standards through<br />

company-wide policies, including our Code of Ethics and Business<br />

Conduct, Health and Safety, Environmental, Biodiversity, Anti-bribery,<br />

and Antitrust.<br />

Through ETHOS, our internal ethics management system, we raise<br />

awareness and integrate procedures to track compliance with policies<br />

as well as detect, manage, and reduce ethics and compliance<br />

risks. This company-wide effort includes training for individuals, employee<br />

perception surveys, communication campaigns on specific<br />

topics, ETHOS@Plaza (the company’s employee intranet), and the<br />

ETHOSline reporting channel.<br />

EVP Planning<br />

&Finance<br />

Senior Vice President<br />

Energy and<br />

Sustainability<br />

Corporate Director<br />

of Sustainability<br />

Corporate<br />

Sustainability<br />

Team<br />

SUSTAINABILITY<br />

AT CEMEX<br />

ENHANCE OUR MANAGE OUR<br />

VALUE CREATION FOOTPRINT<br />

ENGAGE OUR<br />

STAKEHOLDERS<br />

Board of<br />

Directors<br />

Chairman & CEO<br />

MANAGEMENT TEAM<br />

Sustainability<br />

Committee<br />

Sustainability<br />

Model<br />

<strong>Report</strong>s of violations of our Code of Ethics and Business Conduct or<br />

policies can be made through ETHOSline or directly to the Audit Committee,<br />

Global Ethics Committee, Legal Department, local Ethics Committee,<br />

local Human Resources Department, or immediate supervisors.<br />

PublIC POlICIeS aCtIvItIeS<br />

CEMEX actively follows public policy developments in many of the<br />

countries and regions in which it operates, and advocates in support<br />

of its business and sustainability priorities. Current priorities include:<br />

environmental protection, climate change, carbon markets, sustainable<br />

construction, economic policies, and financing models that<br />

encourage investment in sustainable infrastructure.<br />

In <strong>2010</strong> we published six position papers, all of which are available<br />

on our website, that explain CEMEX’s position on: Climate Change,<br />

Alternative Fuels, Market Mechanisms for Mitigating Climate Change,<br />

Carbon Capture and Storage, Environmental Management and Biodiversity,<br />

and <strong>Sustainable</strong> Construction.<br />

Learn more about our company policies and position papers at<br />

www.cemex.com/sustainability<br />

Audit Committee<br />

Corporate Practices<br />

Committee<br />

Finance Committee<br />

EVP Administration President EMEAA President Americas<br />

Regional and<br />

Country Presidents<br />

Americas and EMEAA<br />

Sustainability Coordinators<br />

Sustainability Country<br />

Operations


Our commitment to sustainability is reflected in the various awards<br />

that we have received around the world, including the following in<br />

<strong>2010</strong>:<br />

World business and <strong>Development</strong> Awards recognized CEMEX<br />

for its contributions to achieving the Millennium <strong>Development</strong> Goals<br />

through programs that foster and facilitate development, including<br />

Centros Productivos de Autoempleo.<br />

forrester Groundswell Award in Management–Collaboration<br />

System category recognized CEMEX for its Shift platform. Shift uses<br />

social media—social networks, wikis, discussion groups, and other<br />

communications tools—to enable meaningful collaboration among<br />

employees around the world through the sharing of innovative ideas<br />

and best practices.<br />

big tick Award from the Business in the Community (BITC) was<br />

granted to CEMEX for its Patrimonio Hoy Program in Mexico and<br />

Latin America.<br />

<strong>Sustainable</strong> <strong>Development</strong> Award was granted to CEMEX in<br />

France for two of its quarries by the National Union of Aggregate<br />

Producers (UNPG)<br />

UnICEM Environmental Award recognized CEMEX in France for<br />

its quarry rehabilitation efforts by L’Union Nationale des Industries de<br />

Carrières et Matériaux de Construction (UNICEM)<br />

Health & Safety Award for zero accidents at four of CEMEX in<br />

Germany’s operations granted by the German Association of Cement<br />

Industry (VDZ)<br />

Sustainability Index Silver Award to CEMEX in Latvia granted by<br />

the Employers Confederation and Free Trade Union Association<br />

ClARES for CSR recognizing CEMEX’s CSR programs in Mexico was<br />

granted by Universidad Anáhuac<br />

AWARDS and<br />

recognitions<br />

best CSR Practices for CEMEX’s Centros Productivos de Autoempleo<br />

Centro Mexicano para la Filantropía<br />

best Safety Award and Zero lost time Accident Award to<br />

CEMEX in the Philippines by the Philippine Mine Safety & Environment<br />

Association<br />

Award for innovative application of self-compacting concrete<br />

was granted to CEMEX in Poland by the Association of Readymix<br />

Concrete Producers<br />

Economic Contribution to Society Award to CEMEX in Spain by<br />

the European Aggregates Association<br />

Environmental Defense Award for CEMEX in Spain’s commitment<br />

to the environment by the ADM Business School<br />

International Safety Award for risk assessments and safety<br />

systems at all CEMEX sites in the UK granted by the British Safety<br />

Council<br />

RoSPA Occupational Health & Safety Awards recognition for 12<br />

CEMEX operations in the UK, granted by the Royal Society for the<br />

Protection of Accidents (RoSPA)<br />

William W. Howard C.E.O. Award for environmental stewardship<br />

to CEMEX in the USA by the Wildlife Habitat Council (WHC)<br />

EnERGY StAR® Partner of the Year awarded to CEMEX in the USA<br />

and ENERGY STAR® rating awarded to three plants in United States<br />

for superior energy performance by the United States Environmental<br />

Protection Agency (EPA)<br />

Cement Industry Energy & Environmental Awards recognized<br />

two CEMEX’s plants in the United States by the Portland Cement Association<br />

and Cement Americas<br />

To see a full list of awards received by CEMEX in <strong>2010</strong>, as<br />

well as in previous years, please visit our Awards section in<br />

www.cemex.com/sustainability


we welcome your feedback on our sustainability<br />

reporting and performance.<br />

Please send your comments and suggestions to<br />

sd@cemex.com, or write to us at<br />

CeMeX, s.A.b. de C.V.<br />

Corporate Communications and Public Affairs<br />

Av. ricardo Margáin Zozaya 325<br />

san Pedro garza garcía, nl<br />

CP 66265 Mexico<br />

tel: +52 (81) 8888-8888<br />

www.cemex.com<br />

Please consider the environment before printing all or part of this report.<br />

To conserve resources, we neither printed this report nor the annual report.

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!